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Sunday, September 27, 2009

How To Select Trading Window Frames? (Part II)

By Ahmad Hassam

What matters most to a trader or an investor is how to create a positive cash flow. It all depends on your trading strategies. The first step is to identify the type of trade into which we will enter.

Is it a day trade? Is it a swing trade or is it a long term positions trade? Once we acknowledge what our goals and objective are than we can narrow our expectations.

Suppose I am a day trader. I will be generally be able to identify what the average range for the day is and expect that if I miss 20% of the bottom and 20% of the top then I can expect to capture 60% of the average daily range. My expectations are for X amount of a given range.

So how do I start? First I will have to structure my computer and charts to a format that is conducive to day trading. How many pips you want to make in a specific time frame like eight to six bars from entry? 30 pips or 40 pips!

In day trading you should use two time frames; 5 minutes and 15 minutes time frames to look at the market! Use the 5 minute time frame to exit a position in day trading. Use the 5 minute time frame as a shorter time frame trigger to go with the 15 minute signal. Use the 15 minute time frame for the dominant trend if you trade Euro, Yen or Pound, then for day trading.

How do you make your entry and exit decisions in day trading. First look at the 15 minutes chart than take a look at the 5 minutes chart to make your trading decision. The key to remember is when the 15 minute time period is in the buy mode, take the 5 minute buy signals. Similarly when the 15 minute time period is in sell mode, take the 5 minute sell signals.

If you are in a trade based on the 15 minute and the 5 minute time periods, these are the time frames you need to monitor for that specific trade. However as a day trader you can watch the 60 minute time period.

During day trading keep in mind your profit targets and where you are in range. Keeping an eye on the 60 minute time period will help you identify the current trend if a moving average crossover occurs and a potential change in the trend.

Suppose you are trading Euro/USD currency pair. The odds are that your profit potential is in the range of suppose 30 pips or less if the average true range (ATR) is 80 pips based on the past 14 trading days and if the Euro is already down 50 pips when a sell signal is triggered. How do you calculate these things?

You will have to subscribe to a good forex charting service. Free forex charts do not go into very fine details that you need to look into when making your trading decisions. Using good forex charting software will help you automatically calculate all the daily, weekly, monthly pivot points as well as the daily range, support and resistance, S-1, R-1 and other stuff.

You should learn how to calculate pivot points. Using pivot points in day trading can give you an edge. For day trading use the 60 minute time period for calculating the monthly pivot points, 15 minutes time frame for calculating the weekly pivot points and the 5 minute time frame for calculating the daily pivot points. - 23222

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Determining Where To Invest

By Owen Jones

There are quite a few different types of investments out there, and there are several factors, which you should use to determine where you should invest your money.

Naturally, deciding where you will invest begins with checking out the different kinds of investment on the market, determining your risk aversion, and determining your investment style and your financial aims.

If you were going to purchase a new car, for instance, you would do a fair bit of research before making a final decision and a purchase. You would never consider purchasing a car that you had not fully looked over and taken for a test drive. Investing works in much the same way.

You will, of course, learn as much about the investment as you could, and you would want to see how past investors have done as well. It's just common sense!

Does learning about the stock market and investments take a lot of time? Yes, but it is definitely time well spent. There are numerous books and websites on the topic, and you can even take college level courses on the topic, which is what stock brokers do. With access to the Internet, you can actually play the stock market with fake money in order to get a feel for how it works.

You can make simulated investments in a pretend portfolio often called a 'Wish List' and see how they perform. Do a search with any search engine for 'Stock Market Games' or 'Stock Market Simulations', although almost every online stock broker provides these services. It really is a fantastic way to commence learning about investing in the stock market.

Some other sorts of investments outside of the stock market do not usually have simulators, so you will have to learn about those types of investments by reading about them.

As a potential investor, you should read any you possibly can get your hands on about investing, but start at the beginning level of investment books and websites first, otherwise, you will find that you quickly get lost.

Finally, talk to a financial adviser. Tell her your goals and ask them for their suggestions. This is their job! A good financial adviser can easily help you determine where to put your funds, and help you determine a plan to reach all your financial aims. Many advisers will even show you about investing along the way, so make sure you pay very close attention to what they are saying to you! - 23222

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Shocking Truth About How Real Estate Agents Get Paid

By Adam Moore

Real Estate Agent - How the Commission is Divided You could have dealt with lots of estate agents but did you wonder how your real estate agent gets paid? You surely know of that all of the talk about commission, percentages, costs, closing costs for example. Are broken down at closing. what are his actual earnings? The reality is that you are not the one who is paying your agent a commission. It's the approved broker pays your agent as he is the person that can get paid a commission.

It is interesting to understand that the the man who toiled so hard to trade or find your place is not getting as much as you suspect. Ever questioned the way in which the money makes it to your representative? Here are a few ways :

The fact is that the estate agent you are interacting with either works for a brokerage house or an established licensed broker. Whether it is purchasing or selling the agent brings a customer to the table, and a deal is signed between the brokerage house and the client.

The commission is then divided up between the houses, and after that the brokers decide how much to pass on to the agent who truly did the all leg work. The total experience he has in this field or in that market, the time the agent has spent with the company and the level of his productiveness decide the amount he is getting.

As an example a green representative may only get 30 % of the cut where as a veteran who brings in heaps of business, could get half or even more of the proceeds.

There's another strategy too. Here the agent can get the whole commission provided he pays charges each month to the brokerage house. You can consider this a a costs or a rent for using the office and using the name of the organization to back his name.

Some members find this deal extraordinarily advantageous because regardless of how much they make at the end of the month the amount they must pay remains fixed. For such new agents, the conventional split is more preferable as they may not be capable enough to make that fixed payment per month.

Also there are some factors that gobble the final profit made by the brokerage house and the representative. In a few cases referrals come into the picture too where the brokerage house sends a customer to you, they can try for a referral fee.

And then a certain percentage that comes out of the commission which is often paid by the seller at closing. However, this is can be negotiable depending on the sort of market. Another point open to debate is the way in which the commission can be divided. So, as you can see, it isn't just the 6 % but a load more things that count. Your agent gets the cash only after everyone else gets the money. - 23222

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Getting the Best Day Trading Stock Tip

By Zachary Riff

With stock trading, it is simply not enough to just invest. Learning the ins and outs of the stock trading business is essential for every investor if you are to succeed in stock trading.

For beginners, having a working background on stock trading will make the difference in getting the best day trading stock tip and information, or losing big or a wrong stock pick. To jumpstart your stock trading education, signing up to an online trading firm is your first stepping stone.

You can begin by surfing for an online firm that offers free account registration. Choose a site that offers clear and easy instructions. Don't rely on sites and traders who state all you have to do is sign up, punch your credit card credentials, then sit back and relax, and let them do all the hard work. That could be a fraudulent operation in the works. So choose one that you're most comfortable with and know to be reliable. Many sites will also show the steps and ways for you to manage your stocks, keep track of your stock investments, as well as offer the best day trading stock tip updates, and other stock options and news.

In fact, most online stock trading sites also offer online stock services to support beginners who want to learn how to manage their investments and make the buys using vital stock reports, day trading stock tip updates and information. Many online brokerage sites offer real-time day trading stock tip and stock quotes to keep you informed of the shifts and movements on the floor. Some may even offer after hours stock tip and updates for your mutual fund options and stock investments.

To avoid scams, try searching for sites that offer the best ways for you to get firsthand information from the market. These sites offer day trading stock tip developments, stock quote data, and other stock trading information. Getting real-time stock information is essential especially for day trading and direct stock investments.

You have to consider, though, that trading stocks online is not as instantaneous as it is on the floor. A lag time of twelve (even up to twenty-four hours!) may pass from the moment you act on that day trading stock tip you got, till the offer is closed, twelve or even twenty-four hours, may have elapsed. If your stock firm doesn't tell you this, consider yourself forewarned especially if the stock you're interested moves in a rapid clip. That day trading stock tip you got could become worthless.

Online trading doesn't happen in real time since the internet cannot duplicate the market hours. So while you're learning the ropes, avoid stocks that are volatile and make the most of daily news and day trading stock tip updates available to you. Keep a pulse on what's happening on the stock market floor so you you can make the necessary adjustments.

Keep yourself updated with the latest stock information is the best way to make any day trading stock tip work for you. And keep this in mind: When you're starting, start small, buy safe and keep away from the shares that swing wildly. As your experience grows, you can develop a working stock trading strategy, so be patient and learn as much as you can, when you're learning about stock trading. - 23222

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An Introduction to Forex Trading

By Bart Icles

Before we engage into any new venture, it is important that we give ourselves enough time to have a proper introduction to the new kind of business we are considering. The same is true if we are locking our eyes on to foreign exchange trading or forex trading. The forex or FX market is a very attractive kind of market, and is reputed to be the largest known financial or trading market in the world. Everyday, trillions of US dollars are being traded in this lucrative market. This average value is even greater than what US equity or stock markets can make in combined volume.

The foreign exchange market works through a spontaneous purchasing or buying of a certain currency in exchange for another type of currency. Although spontaneous, forex traders often make decisions based on market signals. This only emphasizes the different forms of irony that take place in this unpredictable kind of market. In trading currencies, you will notice they are typically bought and sold in groups of two or what the forex market knows as currency pairs. The most common currency pairs include EUR/USD and USD/JPY.

One of the most common questions that newcomers to the forex market have is why people need to engage in forex trading. Currencies are often traded because businesses and governments that sell and purchase products and services to international markets need to convert the profits that they make into currencies that can be accepted in their home countries. However, this only counts as a small part of the forex market.

The large bulk of earnings made through forex trading can be attributed to traders who venture into the market to make profits and at other times, speculations. Presently, currency trading is often done through the use of majors or the most liquid currencies. The most liquid currencies in the forex market as of date are the Euro, US dollar, Japanese Yen, Australian dollar, Canadian dollar, Swiss franc, and British pound.

One main advantage of the forex market is its availability to traders virtually 24 hours a day. Typically, the forex market opens each day a Sydney then makes its way to other forex trading centers in the world, including Tokyo, London, and New York. In this manner, forex traders or investors can quickly respond to currency fluctuations. These currency fluctuations are results of economic, social, and political events that take place and change everyday. - 23222

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